New Tax Regime: Its feachers and Benifits
Individuals and HUF taxpayers are eligible to choose a new tax regime from FY 2020-21. If you want to choose new tax regime then you have to chose option ‘yes’ for the question ‘Whether opting for taxation under Section 115BAC?’ while efiling for Income Tax Return. If you want to choose Old Tax regime then opt option ‘No’.
Section – 115BAC, Income-tax Act, 1961-2021
Tax on income of individuals and Hindu undivided family.
115BAC. (1) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, the income-tax payable in respect of the total income of a person, being an individual or a Hindu undivided family, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall, at the option of such person, be computed at the rate of tax given in the following Table, if the conditions contained in sub-section (2) are satisfied, namely:—
| Sl. No. | Total income | Rate of tax |
| (1) | (2) | (3) |
| 1. | Upto Rs. 2,50,000 | Nil |
| 2. | From Rs. 2,50,001 to Rs. 5,00,000 | 5 per cent |
| 3. | From Rs. 5,00,001 to Rs. 7,50,000 | 10 per cent |
| 4. | From Rs. 7,50,001 to Rs. 10,00,000 | 15 per cent |
| 5. | From Rs. 10,00,001 to Rs. 12,50,000 | 20 per cent |
| 6. | From Rs. 12,50,001 to Rs. 15,00,000 | 25 per cent |
| 7. | Above Rs. 15,00,000 | 30 per cent: |
In new tax regime various discount like as 80C, 8OD, HBL Interest, Standard Deduction and many more are not available. So before choosing the option compare your tax in two regime, after that choose whichever is better.